Summaries of health policy coverage from major news organizations

Merck Is Latest Drugmaker To Lower Some Prices, Earning Political Points As White House Prepares Cost Plan

Merck follows Pfizer and Novartis in dropping prices on a few of their drugs. But, like with the other two, beneath the promise is a strategy that makes it uncertain if consumers will benefit. For example, Merck lowered the cost of its hepatitis C drug, Zepatier. But that treatment has not gained traction in the U.S. marketplace anyway, so the drop could actually be an attempt to boost Merck sales for an underperforming drug.

The Hill:
Merck To Lower Prices For Some Drugs
The pharmaceutical company Merck on Thursday announced it would lower the costs of some drugs in its portfolio. The company will drop the price of Zepatier, a Hepatitis C drug, by 60 percent, and decrease the costs of "several other" drugs by 10 percent. It also said it would not increase the average net price of drugs in its portfolio by more than inflation annually. (Hellmann, 7/19)

Stat:
Merck Joins The List Of Drug Makers Agreeing To Freeze Or Lower Some Prices
In a brief statement, the company agreed not to increase the average net prices of its medicines by more than inflation annually, and then also dropped the wholesale — or list — price by 60 percent on its Zepatier hepatitis C treatment and lowered list prices by 10 percent on a half dozen other drugs. However, the extent to which its moves will actually be meaningful are being questioned. (Silverman, 7/19)

The New York Times:
Merck To Lower Prices On Some Drugs, But Not Its Blockbusters
The move follows recent announcements by Pfizer and Novartis that they would freeze price increases for the rest of the year, as the industry confronts sustained criticism from President Trump, lawmakers and the public over the rising cost of prescriptions. Merck’s action shows just how cautiously the industry is shifting strategies: It did not cut the prices of any blockbusters like the cancer treatment Keytruda or the diabetes drug Januvia. Instead, it said it would reduce by 60 percent the list price of Zepatier, a hepatitis C drug whose recent sales have dipped so low that, after paying after-the-fact rebates to insurers, the company recorded no sales in the United States for the product in the first quarter of this year. (Thomas, 7/19)

The Wall Street Journal:
Merck To Limit Drug-Price Increases, Cut Some Prices
Merck, based in Kenilworth, N.J., said it was cutting prices “to help reduce patient out-of-pocket costs.” The price cuts will go into effect in the fall, a spokeswoman said. Merck and other drugmakers typically pay rebates to pharmacy-benefit managers and insurers that amount to discounts from list prices. But uninsured patients and those with high-deductible health plans can still be on the hook for the full list price. (Loftus, 7/19)

In other pharmaceutical news —

The Washington Post:
Trump Administration To Explore Allowing Drug Imports To Counter Price Hikes
The Trump administration is cracking open the door to using prescription drugs imported from overseas — ones that have not been approved by the Food and Drug Administration — to combat high drug prices in limited circumstances. The FDA announced on Thursday that it plans to create a working group to examine how to safely import drugs in a specific situation: when there's a sharp price increase for an off-patent drug produced by a single manufacturer. (McGinley, 7/19)

Stat:
HHS Opens Door To Possibility Of Importing Some Drugs In Limited Cases
It’s an early step, but the idea behind it is one of the boldest the administration has yet proposed as it has laid out a series of ways to bring down the cost of prescription drugs. Although President Trump said on the campaign trail that he supports importing drugs from other countries as a way to lower prices for Americans, the notion has traditionally been more popular among Democrats. Independent Sen. Bernie Sanders of Vermont, the former presidential candidate, is one of its most vocal proponents. (Mershon, 7/19)

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